Did You Know

| March 03, 2018
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Where have all of the publicly trades companies gone?

Data courtesy of Credit Suisse

  • The Wilshire 5000 is made up of 3,492 publicly traded companies.
  • Total listed domestic companies fell from 7,322 at its peak in 1996 to 3,671 in 2016, a 50% decrease.
  • There were 90% fewer IPOs in 2016 vs. 1996 peak.
  • 140 public companies represent more than 50% of the total U.S. market capitalization.
  • There are more than 5,900,000 private companies in the U.S.
  • Number of U.S. “unicorns” (private companies worth more than $1 billion) has grown from 39 in 2013 to 134 today.

Maybe this is why it may not be worth being a publicly traded company:

According to a recent study, 80% of CEOs surveyed said they’d pass up making an investment that would fuel a decade’s worth of innovation if it meant they’d miss a quarter of earnings results.

But, if you are a publicly traded company don’t be surprised by manipulation by the CEO. According to a recent Harvard Business Review study, when a CEOs’ equity i about to vest, they will cut investment and capital expenditures to artificially boost the stock price.

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

 

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